GAAP and Healthcare GAAP Generally Accepted Accounting Principles
- Slides: 10
GAAP and Healthcare
GAAP • Generally Accepted Accounting Principles • Standardization of Financial Reporting • Basic Principles
GAAP Basic Principles Principle of regularity Principle of consistency Principle of sincerity Principle of the permanence of methods • Materiality concept • Principle of noncompensation • • Principle of prudence Principle of continuity Principle of periodicity Principle of Full Disclosure/Materiality • Principle of Utmost Good Faith • •
GAAP and Healthcare • GAAP and Healthcare – Stability – Insurance – Reporting
Application to Operating Budgets • Operating Budget • Comparative Analysis • Operating Budget and GAAP 0
Cost Management • Definition – Project – Company • Uses – Manage Cost – Ensure costs are producing desired results
Capital and Operating Budgets • Purpose • Capital – ROI – Payback • Operating
Budget Changes • Budget Variations • Scenarios
Budget Changes • Increase in wages – – $1. 00 increase per hour 5 nurses 2080 hours per year 5 x 2080 x 1=$10400 increase per year • Increase in hour ratio – Each nurse works more hours per year – Increase from 2080 to 2340 (40 hr/wk to 45 hr/wk) – 5 x 260 x 21. 41= $27833
References Bragg, Steven. The vest pocket guide to GAAP. 3. Hoboken: : John Wiley & Sons, Inc, 2010. Print. Bragg, Steven M. GAAP 2012. Hoboken: John Wiley & Sons, Inc, 2011. Print. Eldenburg, L. , and S. Wolcot. Cost management. 2. United States of America: Walsworth Publishing Company, 2011. Print. Financial Accounting Standards Board of the Financial Accounting Foundation. Accounting standards update. Health care entities (topic 954). (2011 -07), 2011. Retrieved from: http: //www. fasb. org/cs/Blob. Server? blobcol=urldata&blobtable=Mungo. Blobs&blobkey=id& blobwhere=1175822797036&blobheader=application/pdf Hansen, D. R. , Mowen, M. M. , & Guan, L. Cost management: accounting & control. (6 th ed. ). Mason, OH: South-western Cengage Learning, 2009. Print.
